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Financial repression

Global debt to Globaln #gdp has reached 350%. To eliminate or reduce that debt, there are basically theee options: (1) you increase productivity, to earn more money, which is difficult in an environment where central banks are tightening (2) you create inflation, and maintain it controlled but high enough and long enough to deflate the debt in nominal terms or (3) you default. It appears that we are immerse in scenario 2. Consumers around the world may continue to be squeezed by inflation for some time, in order to reduce debt on a phenomenon called financial repression.


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